Valad gets festive in Blackpool for growing VEDF portfolio

Valad Europe has acquired three UK properties for a total of £24 mln (€33 mln) on behalf of the Valad European Diversified Fund (VEDF).

News of the investments comes a day after Valad Europe revealed it had acquired an office property in the central German city of Wiesbaden for VEDF at a yield of 9.37%.

The largest of the UK deals saw Valad Europe acquire the Festival Leisure Park in the English seaside town of Blackpool. The 824 m2 asset was acquired from Scottish Widows Investment Partnership for £12.5 mln, reflecting a net initial yield of 8.94%.

The purpose-built park has a weighted average unexpired lease term of 9.5 years and is currently let to Odeon Cinema, Bannatyne’s Health Club, Frankie and Benny’s, McDonald’s and Spirit Pub.

Sir Walter Raleigh House, a 1,940 m2 office property, was acquired on St Helier, Jersey from Palmer Capital. The investment volume of £6.4 mln reflects a net initial yield of 7.33%. Tenants include Aberdeen Private Wealth Management, CVC Capital Partners, Jersey Finance and Capco Trust Jersey.

In the third transaction, Mitre Retail Park in Wolverhampton was acquired for £4.7 mln, reflecting a net initial yield of 7.56%. Located 1.5 miles from the centre of Wolverhampton, the 4,330 m2 retail park comprises two warehouse buildings let to Go Outdoors, Carpetright and Harveys.

Simon Marriott, Valad Europe’s head of UK real estate, commented: 'We have now purchased 16 assets in the UK for VEDF. All of these investments are in strong regional locations and provide considerable asset management and repositioning opportunities. We are already looking at introducing new food and beverage outlets at Festival Leisure Park and are exploring reversionary rent potential and lease re-gearing opportunities at the other two assets.'

Strutt & Parker acted for Valad Europe on Festival Leisure Park and Clay Street Property Consultants advised Valad Europe on Mitre Retail Park.

The Valad European Diversified Fund is an £800 mln fund which employs leverage of between 50 - 65%. The fund invests in core-plus/value-add assets in the UK, Germany and France with individual lot sizes between £5-£50 mln across the office, retail and industrial distribution warehouse/smaller logistics sectors.

Valad Europe manages €5.3 bn of real estate assets across its 24 funds and mandates in Europe, comprising over 400 assets and around 3,700 tenants which are managed by 180 people in 22 offices and 13 European countries.

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